American Express (NYSE: AXP) announced it’ll be buying Revolution Money, the company started by co-founder of AOL – Steve Case – for close to $300 million.

Revolution Money focuses on the emerging demand for electronic payments and securing these transactions to make them safe for consumers to use.

Close to one million merchants participate in the major product offered by Revolution Money, which entails making purchases at checkout counters which include a PIN number with a card that uses no account number, signature or name, making it extremely difficult for identity thieves to exploit.

Another product created for the current electronic money market is from Revolution Money is called MoneyExchange, which allows family and friends to receive or send money between them. It also empowers users of instant messaging and social networks to do the same.

From the perspective of Revolution Money founder Jason Hogg, this will help the company grow to scale years faster than they ever could have on their own. Hogg will remain on as CEO and president of the company once the deal receives regulatory approval and is closed.

American Express Chairman and CEO Kenneth Chenault said in a conference call this is one of a number of steps they company will take in the “emerging payments” market, and he considers it a real important one. Chenault added he has plans to expand Revolution Money internationally.

Revolution money was backed by former AOL businessmen Steve Case and Ted Leonsis, with Goldman Sachs (NYSE:GS) also being an investor in the company, which was originally launched to directly compete with PayPal, another digital money payment and transfer company.

Ted Leonsis said concerning being bought by American Express that “We can drive this technology and set of applications to a mass consumer audience, as well as large and growing online merchant community.”
 
Leonsis will help work with American Express to grow the products of Revolution Money for mobile devices and expanded online use.

If approved, the deal will close sometime in the first quarter of 2010.